Statute Details
- Title: Income Tax (Exemption of Foreign Income) (No. 8) Order 2013
- Act Code: ITA1947-S531-2013
- Type: Subsidiary Legislation (SL)
- Authorising Act: Income Tax Act (Chapter 134)
- Authorising Provision: Section 13(12) of the Income Tax Act
- Enacting Formula: Minister for Finance makes the Order in exercise of powers under section 13(12)
- Citation: “Income Tax (Exemption of Foreign Income) (No. 8) Order 2013”
- Key Provisions: Section 1 (Citation); Section 2 (Exemption and conditions)
- Document Identifier (as published): SL 531/2013
- Published/Made Date: 20 August 2013
- Commencement (as to dividends): Dividends received in Singapore on or after 29 May 2013
- Status: Current version as at 27 Mar 2026 (per legislation portal)
What Is This Legislation About?
The Income Tax (Exemption of Foreign Income) (No. 8) Order 2013 is a targeted tax exemption order made under Singapore’s Income Tax Act. In plain terms, it grants a specific exemption from Singapore tax on certain dividends received in Singapore by a named entity, Asian Pay Television Trust, from specified overseas companies.
Unlike broad-based tax regimes that apply to categories of taxpayers, this Order is narrow and fact-specific. It is designed to facilitate a particular cross-border investment or corporate structure by relieving the recipient from tax on dividends that would otherwise fall within Singapore’s taxing framework. The Order also makes clear that the exemption is not unconditional: it depends on tracing the ultimate source of the dividends and compliance with specified terms and conditions set out in an approval letter.
Practitioners should view this Order as part of Singapore’s mechanism for granting exemptions from tax on foreign-sourced income (or foreign income components) where policy and administrative considerations justify relief. It is therefore best understood alongside the Income Tax Act’s general provisions on exemptions and the administrative approval process referenced in the Order.
What Are the Key Provisions?
Section 1 (Citation) is straightforward. It provides the formal name by which the Order may be cited: “Income Tax (Exemption of Foreign Income) (No. 8) Order 2013”. While this does not affect substantive rights, it is important for accurate legal referencing in filings, correspondence with tax authorities, and litigation or advisory work.
Section 2 (Exemption) is the operative provision. Section 2(1) grants Asian Pay Television Trust an exemption from tax on dividends received in Singapore on or after 29 May 2013. The dividends must be received from two named Bermuda-incorporated companies: APTT Holdings 1 Limited and APTT Holdings 2 Limited.
From a practitioner’s perspective, the scope of the exemption turns on three elements: (1) the recipient (Asian Pay Television Trust), (2) the income type (dividends), and (3) the payer/source companies (APTT Holdings 1 Limited and APTT Holdings 2 Limited), together with the timing (dividends received in Singapore on or after 29 May 2013). If any of these elements are not satisfied—for example, if the dividends are paid by a different company or received before the relevant date—the exemption may not apply.
Section 2(2) (Conditions and limitations) is equally important. The exemption is expressly subject to two conditions:
(a) Tracing of ultimate source of funds: The ultimate source of the funds from which the dividends are declared must be traceable to income derived by the “Taiwanese Operating Companies” referred to in a specific place in the approval documentation—namely, the footnote to paragraph 2(vi) of the letter of approval dated 16 January 2013 addressed to Macquarie International Infrastructure Fund Limited and Macquarie Korea Opportunities Fund. The Order requires that such income comes from the Taiwanese Operating Companies’ respective business activities.
(b) Compliance with terms and conditions in the letter of approval: The exemption is also conditional on compliance with the terms and conditions specified in the letter of approval. This means that the approval letter is not merely background; it is incorporated by reference as a controlling document for the exemption’s continuing validity.
These conditions reflect a policy objective: to ensure that the tax relief is linked to the underlying economic source of the dividends and to ensure that the approved structure and arrangements remain within the boundaries contemplated by the tax administration. For legal and tax advisers, this creates a compliance and documentation imperative: the taxpayer must be able to support the tracing exercise and demonstrate adherence to the approval letter’s terms.
Finally, the Order includes a formal “Made” clause, signed by the Permanent Secretary (Finance) (Performance), Ministry of Finance, Singapore, on 20 August 2013. While this is procedural, it also helps confirm the administrative authority and date of enactment for record-keeping and audit purposes.
How Is This Legislation Structured?
This Order is extremely concise. It contains:
(1) A citation provision (Section 1), and (2) a single substantive exemption provision (Section 2) with subsections and conditions. There are no Parts, schedules, or detailed procedural rules in the extract provided. The operative content is therefore concentrated in Section 2, which both grants the exemption and sets the conditions.
Although the Order itself is short, it relies on external documentation—most notably the letter of approval dated 16 January 2013. In practice, that letter functions as a key interpretive and compliance reference point. The Order also references a footnote to paragraph 2(vi) of that letter, which identifies the Taiwanese Operating Companies. Accordingly, practitioners should treat the approval letter as part of the “effective legal framework” for determining whether the exemption applies and remains available.
Who Does This Legislation Apply To?
The exemption applies to Asian Pay Television Trust as the named recipient of dividends. It does not apply generally to all trusts or all dividend recipients. The Order is therefore best characterised as a person-specific and transaction-specific exemption.
In addition, the exemption is limited to dividends received in Singapore on or after 29 May 2013 from APTT Holdings 1 Limited and APTT Holdings 2 Limited. Even if Asian Pay Television Trust receives other types of income, or dividends from other companies, the exemption’s coverage is confined to the specified dividend stream and timing.
Because the exemption is conditional on tracing the ultimate source of funds and compliance with the approval letter’s terms, the practical “applicability” extends beyond the recipient to the underlying corporate and operational structure—particularly the Taiwanese Operating Companies and the business activities that generate the income from which the dividends ultimately derive.
Why Is This Legislation Important?
This Order matters because it provides a clear statutory basis for tax relief on a defined category of cross-border dividends. For practitioners advising on structuring, dividend planning, or tax compliance for investment vehicles, such exemption orders can materially affect effective tax rates and cash-flow outcomes.
From an enforcement and risk perspective, the conditions in Section 2(2) are the critical features. The requirement to trace the ultimate source of funds and to comply with the terms and conditions in the approval letter means that the exemption is not merely a one-time grant. Tax authorities may expect evidence supporting the tracing methodology and ongoing compliance with the approved arrangement. Failure to satisfy these conditions could result in the exemption being denied or withdrawn, potentially leading to tax assessments, interest, and penalties depending on the circumstances.
Practically, lawyers should ensure that clients maintain robust documentation, including: (i) records of dividend declarations and payments from the specified Bermuda companies; (ii) evidence enabling tracing of the ultimate source of funds back to the Taiwanese Operating Companies’ income; and (iii) a compliance file demonstrating adherence to the terms and conditions in the letter of approval dated 16 January 2013. Where tracing depends on complex corporate flows, advisers should consider whether independent confirmations, audited financial statements, or intercompany transaction records are needed to support the tracing requirement.
Finally, this Order illustrates a broader administrative approach in Singapore tax law: exemptions can be granted by subsidiary legislation, but they are often tied to specific approvals and factual matrices. Understanding this approach helps practitioners interpret similar exemption orders and advise clients on how to manage compliance obligations that are incorporated by reference to approval letters.
Related Legislation
- Income Tax Act (Chapter 134) — in particular, section 13(12) (the authorising provision for this exemption order)
- Income Tax Act — general provisions on exemptions and the taxation of income, including dividends and foreign-sourced income concepts (as applicable)
- Legislation timeline / versions — to confirm the correct version of SL 531/2013 applicable to the relevant tax period (as the portal indicates “current version as at 27 Mar 2026”)
Source Documents
This article provides an overview of the Income Tax (Exemption of Foreign Income) (No. 8) Order 2013 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.